INDUSTRIAL REAL ESTATE MARKET Q3/2024

"Demand has gradually increased since the first quarter. However, the performance of the market, which is generally more active, has been determined for some time by several large transactions. These account for the majority of new space being let in the Czech Republic. The fewest new contracts were signed in the 5,000 to 15,000 m² range, where only two new contracts were signed in the third quarter. This zone is expected to form the backbone of the Czech industrial rental market," comments Jakub Holec, Director of 108 REAL ESTATE.

- In Q3 2024, the total premium industrial space available for lease reached 12,208,947 sqm. After including shell & core (S&C) space, the total area is even 12,734,236 sqm.

- 161,572 sqm of new space was delivered to the market and 1,203,952 sqm was still under construction across the Czech Republic at the end of September. The largest new building on the market was Hall B at Panattoni Park Kladno South with an area of 20,941 sqm.

- The vacancy rate of completed space fell for the first time since Q3 2022 to 3.49%, representing 426,294 sqm. Including space in S&C condition, the vacancy rate has decreased to 6.35% with a total availability of 808,105 sqm. At the end of Q3 2024, there was a total of 528,989 sqm of modern 'A' standard space in S&C condition, the majority of which was available to potential clients.

- Net take-up totalled 207,046 sqm and gross take-up totalled 335,950 sqm. The third quarter saw further significant lettings to clients in the automotive sector, indicating a reverse trend compared to this sector in Western Europe. Each quarter of 2024 to date has included a significant transaction with a client from this sector.